Question

How do you make people believe that the banking system is safe? In the old days it was often done with architecture. Bank buildings were massive buildings with large cement pillars in front. Would you agree or disagree with this statement?  

Answer 1

21st century has been described as the century of internet, today the internet is not a luxury but an everyday commodity, and this has led to the migration of traditional businesses on the internet, one of such business is banking.

But this also has a downside, with rapid digitalization and globalization, now the ripple effects of an economic slowdown in America can be seen in Australia, this can lead to markets crashing, which in turn would impact a bank’s assets, and ultimately the customer would be at loss.

To overcome this, banks need to develop a robust system of operation, this can be done by following Glass-Steagall legislation, under which it is clearly specified how the bank should have a different way of working while dealing in commercial space and investment space.

Plus, the bank should put under the scanner of a regulatory body that publishes quarterly performance reports of the bank, focusing on vital aspects like assets, debts, liabilities for the public to see, this surely would help in establishing the image that bank is working in a transparent way.

Lastly, I personally don’t think by building large buildings and towers would help serve the purpose of cultivating trust in the baking system among the public mind, more focus should be done on the proper functioning of the bank.